MoonPay adds Discover Network, opening a third card rail for crypto buyers

U.S. clients can now buy or sell cryptocurrencies at MoonPay using Discover cards, giving them yet another opportunity to invest in digital currencies. By integrating Discover to the list of supported services already featuring Visa and Mastercard, MoonPay has made it possible for clients to process their transactions using any card from the three biggest U.S. payment service providers.

This new update focuses on simplifying cryptocurrency payments rather than just adding extra payment buttons. Card networks are still one of the most important intermediaries between traditional finance and cryptocurrency, and when there are more payment methods, it becomes easier for new buyers to make a move.

As MoonPay states, it works with over 30 million customers in 180 countries, facilitating the payment process for over 500 wallets, exchanges, and applications, including eligible users in the US who have Discover cards.

Discover completes MoonPay’s major U.S. card lineup

Discover is now part of MoonPay’s portfolio of payment methods that already includes Visa, Mastercard, Apple Pay, Google Pay, PayPal, Venmo, bank transfers, and local payment options.

“Every payment method we add removes a reason someone doesn’t convert at checkout,” said Richard Harrison, Vice President of Banking and Payments Partnership at MoonPay. Claudia Schaefer, Vice President at Discover Global Network, pointed out that this partnership enables people to have more options in terms of paying.

The addition is particularly intriguing, given that Discover’s take on cryptocurrency is much more careful than that of Visa and Mastercard. While both of the larger companies have effectively spent years developing crypto programs, partnerships with exchanges, and stablecoin projects, Discover has been a much more minor player in the arena.

While Discover may be smaller than either of its competitors, it still serves millions of cardholders, which will allow MoonPay to tap into a new pool of potential crypto customers.

Network support still doesn’t guarantee approval

Introducing Discover into MoonPay’s checkout process does not imply that cryptocurrency transactions can be processed with all Discover credit cards.

Crypto payments, like Visa and Mastercard transactions, are governed by the policies of the issuing bank. Be it banks or any other financial institutions, they have to choose whether or not to process a transaction involving crypto with their independent risk policies, fraud defense, and compliance. Hence two customers using Discover cards from different banks can be treated differently when making a purchase.

MoonPay did not announce approval or denial ratios for each card network, which complicates comparison of Discover’s performance against Visa and Mastercard. While the integration means improvements in technical capabilities, decisions still lie with the issuing banks.

A broader payments strategy

The launch also occurs as Discover begins a new chapter as the Capital One acquisition of Discover Financial Services has resulted in the creation of one of the biggest integrated card issuers and payment networks in America.

Meanwhile, MoonPay has been growing its business from basic fiat-to-crypto transactions to a much more complex enterprise, including the recent launch of MoonPay agents that leverage artificial intelligence to create self-custodial wallets and execute transactions. According to MoonPay, the company has finally become cash flow positive in 2024 after earning twice as much profit compared to 2023, which proves the increasing demand for its payment solutions.

The integration of Discover is not a significant change in the adoption of cryptocurrencies but is a step toward making it more mainstream. The acceptance of Visa, Mastercard, and Discover in just one checkout is aimed at allowing more individuals to use cryptocurrencies. With the increasing competition in the regulated on-ramp sector, the increase in the means of payment can be as valuable as the creation of a new blockchain solution.